foreign investments turkey

Foreign investments play a pivotal role in shaping the economic landscape of countries around the world. Turkey, recognizing the significance of foreign capital inflows, has implemented a robust framework to protect and encourage foreign investments.

In this article, we will explore the multifaceted approach that Turkey employs to safeguard foreign investments.

Legal Foundations of Investment Protection

Turkey’s commitment to safeguarding foreign investments is deeply rooted in its legal framework, spanning various levels of governance.

1. Constitution: Foreign investments enjoy protection at the highest level through the Constitution in Turkey. The Constitution underscores the fundamental principles of property rights, ensuring that all investments, regardless of their origin, are safeguarded under the law.

2. Foreign Direct Investment Law: The Foreign Direct Investment Law is a cornerstone of Turkey’s investment protection regime. This comprehensive law serves several critical purposes:

It outlines the fundamental principles that promote foreign direct investment, creating a conducive environment for foreign investors.

The law places a strong emphasis on protecting the rights of foreign investors, ensuring their interests are safeguarded throughout their investment journey.

By standardizing the definitions of investment and investor, the law provides clarity and consistency, reducing potential ambiguities in legal proceedings.

The law establishes a transparent and efficient notification-based system for foreign direct investments. This system streamlines the investment process, reducing bureaucratic hurdles.

One of the primary goals of the law is to increase foreign direct investment in Turkey, promoting economic growth and international collaboration.

International Treaties:

Turkey’s commitment to protecting foreign investments extends beyond its borders. The country is a party to 117 bilateral investment treaties (BITs), which focus on both the protection and promotion of investments. Of these, 82 are currently in force, underscoring Turkey’s dedication to fostering a favorable investment climate.

In addition to BITs, Turkey has also entered into 90 double taxation treaties (DTTs). These treaties play a crucial role in preventing double taxation of income and providing foreign investors with greater predictability and stability in their tax liabilities.

Furthermore, Turkey is a signatory to various international agreements related to customs unions, free trade, multilateral investments, protection of social security rights, and alternative dispute resolution methods. These agreements bolster the country’s commitment to providing a secure and hospitable environment for foreign investments in Turkey.

Institutional Support for Investment Protection

To effectively implement and oversee the protection of foreign investments, Turkey has established two pivotal institutions:

1. Investment Office of the Presidency: The Investment Office of the Presidency is a key driver of Turkey’s investment promotion efforts. It plays a central role in attracting foreign investment by offering a range of services and incentives to potential investors. The office acts as a one-stop-shop, assisting investors throughout the investment process, from initial inquiries to project realization. Its mission is to create a seamless and investor-friendly environment, contributing to the growth of foreign investment in Turkey.

2. Coordination Council for the Improvement of Investment Environment: This council serves as a high-level advisory body, focused on enhancing the investment climate in Turkey. Comprising representatives from various ministries and institutions, the council collaborates to identify and address obstacles to investment. It works to streamline regulations, reduce bureaucracy, and enhance legal frameworks to ensure that foreign investors encounter minimal barriers when investing in Turkey.


Turkey’s approach to protecting foreign investments is both comprehensive and forward-thinking. By anchoring investment protection in its Constitution, enacting the Foreign Direct Investment Law, and engaging in numerous international agreements, Turkey demonstrates its commitment to providing a secure and welcoming environment for foreign investors. The presence of dedicated institutions like the Investment Office of the Presidency and the Coordination Council for the Improvement of Investment Environment further reinforces Turkey’s position as a destination of choice for foreign investments. As a result, Turkey continues to attract a diverse array of investors, fostering economic growth and international collaboration for a prosperous future.



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